Fed Mouthpiece: Nonfarm Payroll Report Provides Ample Reason for Fed to Hold Steady This Month

According to Odaily, "Federal Reserve mouthpiece" Nick Timiraos recently wrote: "Tonight's December employment report provides ample reason for Federal Reserve officials to maintain a wait-and-see attitude at this month's meeting. Non-farm payrolls increased by only 50,000, and the three-month average for private sector hiring dropped to 29,000, the second lowest growth rate of the year. This sluggish pace of job growth highlights the 'slow hiring, slow firing' dynamic of the labor market in 2025. However, the decline in the unemployment rate has temporarily eased extreme concerns about labor market deterioration. It was precisely these concerns that prompted the Federal Reserve to cut rates at the last three consecutive meetings. This report has solidified market expectations that the Federal Reserve will hold steady at the January 27-28 meeting, but the weak hiring data also ensures that the debate over the health of the labor market is far from over." (Golden Ten Data)